Primary sees issues from Nationwide, BNG; Wal-Mart notes tighten; quiet session ahead

By Cristal Cody and Aleesia Forni

Virginia Beach, April 16 - Nationwide Mutual Insurance Co., Bank Nederlandse Gemeenten and Denmark's KommuneKredit sold new bonds on Wednesday in what is expected to be the last round of issuance for the week.

Nationwide Mutual sold a $400 million issue of 4.95% notes due 2044 on Wednesday at 150 basis points over Treasuries.

The notes priced nearly 13 bps tighter than price talk, which had firmed 25 bps from initial pricing thoughts.

Also on Wednesday, Bank Nederlandse Gemeenten came to market with a $1.5 billion issue of 2.625% seven-year notes to yield mid-swaps plus 41 bps in a Rule 144A and Regulation S deal.

Meanwhile, Denmark's KommuneKredit sold $700 million of three-year floaters at par to yield Libor plus 8 bps during Wednesday's session.

The holiday-shortened week has seen more than $10 billion of paper price as of Wednesday.

Activity is expected to be light on Thursday's shortened session followed by a closed bond market on Friday.

"Today was really the last day to get anything done," one market source said. "We're not looking at anything for the rest of the week."

However, with the strong reception recent deals have received, sources are expecting issuance to resume once earnings season has concluded.

Bonds traded mostly better over the last full session of the week, according to market sources.

Secondary market activity on Thursday is expected to be quiet, sources said.

"I wouldn't expect a whole lot," one source said.

The Markit CDX North American Investment Grade series 22 index ended the day 1 bp tighter at a spread of 68 bps.

Nationwide's bonds were not initially seen in aftermarket trading, according to a trader.

In the secondary market, Wal-Mart Stores Inc.'s senior notes (Aa2/AA/AA) tightened over the session, with the notes due 2024 about 7 bps better than issuance, a trader said. The long bonds brought in Tuesday's deal traded 1 bp tighter on the bid side.

BNG brings seven-years

Bank Nederlandse Gemeenten priced $1.5 billion of 2.625% seven-year notes (Aaa/AA+/AAA) at 99.525 to yield mid-swaps plus 41 bps, according to a market source.

The bookrunners for the Rule 144A and Regulation S deal were Barclays, Daiwa, J.P. Morgan Securities LLC and RBC Capital Markets.

The local government funding agency is based in the Hague, the Netherlands.

KommuneKredit sells floaters

KommuneKredit priced $700 million issue of three-year floating-rate notes (Aaa/AAA/) on Wednesday at par to yield Libor plus 8 bps, a market source said.

The bookrunners were BofA Merrill Lynch and Credit Agricole.

KommuneKredit offers funding and leasing services to municipalities and is based in Copenhagen.

Nationwide Mutual price tight

Nationwide Mutual Insurance priced $400 million of 4.95% 30-year bonds (A3/A-/) on Wednesday with a spread of Treasuries plus 150 bps, an informed source said.

Price talk was set in the area of Treasuries plus 162.5 bps, which had tightened from earlier guidance of a Treasuries plus 187.5 bps area.

Pricing was at 99.969 to yield 4.952%.

The joint bookrunners were Morgan Stanley & Co. LLC, JPMorgan, Wells Fargo Securities LLC and BofA Merrill Lynch.

Proceeds will be used for general corporate purposes, including the redemption of the company's 6.6% surplus notes due April 15, 2034.

The notes were sold via Rule 144A and Regulation S.

The insurance and financial services company is based in Columbus, Ohio.

Wal-Mart better

Wal-Mart's 3.3% notes due 2024 firmed to 66 bps bid, 63 bps offered, a trader said on Wednesday afternoon.

The company sold $1 billion of the notes at Treasuries plus 73 bps on Tuesday.

The retailer's offering of 4.3% bonds due 2044 firmed slightly to 84 bps bid, 83 bps offered, the trader said.

Wal-Mart sold $1 billion of the long bonds at Treasuries plus 90 bps.

The discount retailer is based in Bentonville, Ark.

Bank/brokerage CDS fall

Investment-grade bank and brokerage CDS prices declined, according to a market source.

Bank of America Corp.'s CDS costs firmed 2 bps to 64 bps bid, 67 bps offered. Citigroup Inc.'s CDS costs tightened 2 bps to 71 bps bid, 74 bps offered. JPMorgan Chase & Co.'s CDS costs fell 1 bp to 57 bps bid, 60 bps offered. Wells Fargo & Co.'s CDS costs fell 1 bp to 36 bps bid, 39 bps offered.

Merrill Lynch's CDS costs firmed 2 bps to 67 bps bid, 71 bps offered. Morgan Stanley's CDS costs declined 2 bps to 78 bps bid, 81 bps offered. Goldman Sachs Group, Inc.'s CDS costs tightened 1 bp to 91 bps bid, 94 bps offered.

Stephanie Rotondo contributed to this review.

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